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ADR/GDR

ADRs and GDRs are overseas depositary receipts that represent shares of Indian companies traded in foreign markets.

An ADR trades in the United States, while a GDR typically trades in other international markets.

Each receipt corresponds to a defined number of underlying Indian shares held by a depositary.

Receipt programs give foreign investors access without holding shares directly in Indian demat form.

Corporate actions on the underlying shares are mirrored to receipt holders through the depositary.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.